Mortgage credit was marginally more
available in May than it was in April the Mortgage Bankers Association (MBA) said
today. Its Mortgage Credit Availability
Index (MCAI) inched up 1.14 percent to 115.1 compared to 113.8 in April.
The increase in the index, benchmarked
to 100 in March 2012, was partially due to a slight uptick in the availability
of jumbo loans. There was also a move by
some investors toward lowering credit scores for FHA loans.
The MCAI is calculated using data from
the AllRegs® Market Clarity® product and a proprietary formula derived by MBA. It takes into account several factors of
borrower eligibility such as credit scores, loan type, and loan-to-value ratio
taken from its regular survey of over 85 lenders and investors.
MBA has also produced a new expanded
historical series which tracks credit availability over the previous ten
years. This series permits historical
perspective on credit availability since 2004, a period which includes both the
housing boom and the ensuing recession.